2011

INTERNSHIP REPORT

BAHRIA UNIVERSITY ISLAMABAD

Company Name: HUFFAZ ENTERPRISES Student Name: Awais Idrees University Enroll # 01-211062-018 Email: Im.awais88@gmail.com Date of Submission: 14 September 2011 Semester: Final Year Supervisor Name: Fahad Saleem Title: Asst. Manager Marketing. Email: fahadsaleem_huffaz@hotmail.com Date Of Submission: 10/14/2011

Contents
................................................................................................................................1 ...................................................................................................................................1 ..................................................................................................................2 Contents................................................................................................................................................2 Executive Summary..............................................................................................................................3 Company Overview..............................................................................................................................5 Management Structure......................................................................................................................7 Product & Services...........................................................................................................................7 Competitors ......................................................................................................................................8 Marketing .........................................................................................................................................8 As Huffaz is a B2B company so it does not need to use heavy means of marketing like media. Most of their marketing is done in business journals, magazines, yellow pages. Besides this they also have dealers in different parts of the country who also become a mean of advertisement for them through their positive word of mouth......................................................................................8 Internship at Huffaz..............................................................................................................................9 Organizational Analysis:....................................................................................................................11 Mission............................................................................................................................................11 Vision..............................................................................................................................................11 Products...........................................................................................................................................11 Aims of Marketing Department.....................................................................................................12 Technological Knowhow................................................................................................................13 Internal Threats...............................................................................................................................14 Outside Threats...............................................................................................................................16 Identification of Main Problem......................................................................................................17 Recommendations...............................................................................................................................17 Learning Outcomes.............................................................................................................................19 Bibliography.......................................................................................................................................20

Executive Summary
The purpose of this report is to analyze the workings of Enterprises branch in Rawalpindi. Huffed is ranked as one of the best in pipeline sector of Pakistan. Objectives of this report include recognizing the pipeline sector as a necessary goal for achieving a steady yet improving economy. Hoffa Enterprises holds a major market share in the pipeline sector. The enterprise entails a demand for every customer of domestic market. It employs a significant labor base of the country. During the pasts few years the enterprise has shown remarkable performance in terms of profits and growth despite the fact the whole economy of the country is in recession now. Huffaz caters all types of customer requirements. Its products are highly diversified and provide significant value to the end consumers. The enterprise has opted for aggressive growth strategy throughout the country. Quality and reputation is its highest priority. The report covers every aspect of the enterprises business including an analysis of its operations, and its marketing strategies. A detailed competitor analysis is also described revealing the strategic and competitive position of the enterprise in relation to its competitors. Moreover, there is a thorough briefing of each and every aspect that how the company responds in certain situation to a particular problem. The methods the company uses to cater new customers and also how to overcome their competitors. It is recommended that focused research be conducted for each of the data sources to ascertain just how much influence the companys performance. It is also recommended in the repot that an assimilation and validation of combined series of datasets be conducted to take advantage of each company sources identified strengths. 3

Company Overview
Hafez Seamless Pipe Industries Limited are manufacturers of Seamless Pipes and Tubes, Machinery and Machinery Components. Huffaz was established in 1983 and the manufacturing facility is at Nooriabad Industrial Estate (District Jamshoro) 90-km from Karachi. Huffaz Manufacturers Seamless Pipes and Tubes from high quality, aluminum-killed and vacuum degassed round steel bars imported from internationally reputed steel producers. As a matter of introduction Huffaz is the only manufacturer of Seamless Pipes and Tubes in Pakistan. Over a period of time Huffaz has captured a tremendous market share. The company has on its pool all renowned companies/industries that clearly give the company the edge over competitors. Besides meeting the requirements of local market the company has exported seamless Pipes and Tubes to USA, Germany, Australia, West Indies, Singapore, Kuwait, Saudi Arabia, UAE, Syria, Iran, Bangladesh, Srilanka and Afghanistan. Huffaz believe in high quality product and assurance at every stage from sourcing raw materials to delivery of finished products. To ensure commitment to quality, health, safety and environment is reflected in our compliance with international standards such as ISO 9001:2000, API 5L, API 5CT, ISO 14001:2004, OHSAS 18001:1999 and IIP (investor in people) which makes Huffaz specialized in making top quality products as per the customer requirement and thereby ensuring innovation, reliability and component technical services for the end users. The company pay great attention on the quality of the steel pipe, the way of inspection is advanced, have the online and offline ultrasonic test, steel flat head chamfering machine, hydraulic test, as well as the central of test parent metal chemical composition and mechanical properties and so on, the company has a strictly specified quality assurance system and has got the certificate of ISO9001-2000 for international quality management system and API 5L Certificate and API 5CT Certificate granted by American Petroleum institute to use the API Monogram on the longitudinally welded pipe and spirally submerged are welded pipe. The company not only has confirmed a better reputation in its high quality in the domestic market, but also the products have been exported to lots of countries and regions, such as U.S.A., Canada, Australia, Japan, Iran, United Arab Emirates, Malaysia, Thailand, South Korea, Singapore, etc. 5

Apply to oil, natural gas, shipbuilding, chemical industry, environmental protection, boiler, water conservancy, electricity industry, the steel structure, construction and other industries. The company can take the single and double steel pipe Fusion Bonded Epoxy(FBE), double-layer polyethylene (2PE) and three layers of polyethylene(3PE), double-layer polypropylene(2pp),and three layers of polyethylene propylene(3PP),coal tar epoxy anticorrosive paint anti-corrosion engineering and IPNB710 outer pipe anti-corrosion coating polymer preservation, cement mortar pipe lining anti-corrosion and other pipeline coating structure of a variety of anti-corrosion pipeline corrosion engineering, and the implementation of DIN30670, DIN30671, SY/T40132002, SY/T0315-97 standards. Our company can also undertake a variety of pipe fittings business processing and procurement. Customers apply for inspection of export traders, export tax rebates. We sincerely hope that establish long-term relations of cooperation with you, mutual benefit and common development! Our company keeps the principle of integrity-based, customer first. Thank new and old customers by the best quality, lowest price, the most perfect after-sales service! The pipe-rolling plants advantageous geographical location makes it possible to ship its products rapidly and deliver them to any destination in Pakistan. Delivery of pipe products by sea via the port of Aktau helps KSP Steel to enter markets of the Caspian countries. Proximity to the Russian border opens up markets of Central and Eastern Siberia. At the same time, a well-developed transportation system allows the company to export its steel seamless pipes to any place in the world. The companys key competitive advantage and its trademark is the absolute quality of seamless pipes that meets the highest international standards. This has been achieved du to introduction of the unique equipment and new methods of quality control and test of finished products. Modern pipe rolling equipment, a strong research base and highly qualified staff enable the KSP Steel brand pipes to compete with products of leading companies in the world.

Management Structure

Product & Services

Pipe Flanges and Fittings for Pipe Lines, Boilers & Heat Exchanges. Chain Sprocket, Gear and Worm Wheels. Hi-tech Precision Mechanical Components. Dies & Moulds. Tube Bending & Intricate Fabrication.

 Machinery Components for Various Applications.

Competitors
Huffaz enjoyed as a market leader for quite a period alone but now it has a tough competitor in the market i.e. Cangzhou Zhongshun Steel Pipe trade Co. Ltd. China which is giving it a hard time to survive and still be a market leader.

Marketing
As Huffaz is a B2B company so it does not need to use heavy means of marketing like media. Most of their marketing is done in business journals, magazines, yellow pages. Besides this they also have dealers in different parts of the country who also become a mean of advertisement for them through their positive word of mouth.

Internship at Huffaz
During my three months as an internee in I Mr. Awais Idrees worked as Internee marketer in Huffaz Enterprise. In summer 2010 I started searching for an internship. Marketing is my personal field of interest, as I am good in interacting with people and my convincing power is also not that speculative. I joined Huffaz as an internee and they offered me an internship for three months. On my first day as an internee, I came to know that there was no proper department of marketing over there as they were doing B2B marketing and I was more of interested in B2C marketing. But I thought of taking up the challenge of B2B marketing and it was quite an experience. I came to know a lot of things which I might not have learnt in the B2C marketing. It was very much of a learning experience for me. Working for Huffaz was a unique opportunity to become familiar with an extremely dynamic environment and discover new things every day. The tasks are both diverse and motivational. Its important to be a team player in the field of Revenue Management, because the work involves collaborating intensively with other departments. My work also allows me to establish interesting contacts with various professionals from the tourist industry, both at Huffaz itself and also at companies including Edelweiss Air and other tour operators. Trainees readiness to assume responsibility and work with independence and commitment ensures that they make an active contribution to the design of our ground product, also providing significant support in the execution of new product ideas. In addition to everyday administrative tasks, they offer trainees to assume and implement autonomous projects, in order to promote their conceptual skills and to help them put the theoretical know-how into practice. Furthermore, they give trainees an insight into our many interfaces. "Must-have" qualities include a flexible, open attitude and sufficient motivation to work well in a team."

It should be obvious that youre a fan of the company, and the interviewer should sense immediately that you really want to make a contribution. I have learned a great deal in the last three months and am aiming for a permanent job. When I joined Huffaz till the four weeks, I was just observing the atmosphere of the organization with the assistant manager GM and used to observe how they are working and what actually there task is. In the second month of internship, they used to call me in every meeting of theirs so that I can understand what is actually going around. I started learning different tactics like how to give a demo of the product, how to convince a person to be on your side and how to tackle variant business class people and after the completion of second month the assistant manager was impressed enough that he told me that I will be having opportunity to go to market and giving demos to new customers. In the end of second month it was bit tough as the assistant manager told me that company will assign me projects like meeting with a business client, giving product demos to new customers and making new clients too I was on it now. This was tough in a way that this thing was only read by us in books but we never were able to apply it in real and I got this opportunity to apply those skills of mine practically which was an entire different experience from what we have read. In the last month, I was able to gift Huffaz by winning them new business clients and also providing them new projects from Safa Builders, Nascom, Wullar Engineering and Mava which was quite an achievement for me. I was pretty much appreciated for the job that I had done for them. To wind it up, I at first thought that it will be a boring and tiresome job to do but within a span of one week I started to enjoy it. I taught a lot of things that what happens in the real business world and how to handle different situations and problems if arose. Huffaz Enterprise gave me this platform for being an internee with them and I am very much thankful to them that they trusted on me. They polished my skills to the best of their 10

efforts and I to some extent shone of their exertions. It was a learning experience and I tried my best of expertise to avail this opportunity to the fullest of my endeavors.

Organizational Analysis:
Mission
To emerge as a leader among the responsible corporate citizens, benefiting all its stakeholders through innovation in its products and services

Vision
To maintain its position as leader in providing seamless pipes and tubes and engineering goods and services in local market. To explore export market and get benefit of competitive advantage of its internationally recognized products. To introduce and adopt best practices within the company to achieve its objectives. To maintain high standard and quality of its products while bringing cost effectiveness. To provide adequate return to its investors. To maintain congenial relationship with all of its stakeholders particularly employees, customers and suppliers. To establish and maintain safe, healthy and environment-friendly systems

Products
Pipe Flanges and Fittings for Pipe Lines, Boilers & Heat Exchanges. Chain Sprocket, Gear and Worm Wheels. Hi-tech Precision Mechanical Components. Dies & Moulds. 11

 Tube Bending & Intricate Fabrication.

Aims of Marketing Department

Marketing involves a range of processes concerned with finding out what consumers want, and then providing it for them. This involves four key elements, which are referred to as the 4P's (the marketing mix). A useful starting point therefore is to carry out market research to find out about customer requirements in relation to the 4Ps.

There are two main types of market research; Quantitative research involves collecting a lot of information by using techniques such as questionnaires and other forms of survey. Qualitative research involves working with smaller samples of consumers, often asking them to discuss products and services while researchers take notes about what they have to say. The marketing department will usually combine both forms of research.

The marketing department will seek to make sure that the company has a marketing focus in everything that it does. It will work very closely with production to make sure that new and existing product development is tied in closely with the needs and expectations of customers. Modern market focused organizations will seek to find out what their customers want. For example, financial service organizations will want to find out about what sort of accounts customers want to open and the standard of service they expect to get. Retailers like Argos and Home base will seek to find out about customer preferences for store layouts and the range of goods on offer. Airlines will find out about the levels of comfort that customers desire and the special treatment that they prefer to receive.

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A useful definition of marketing is the anticipation and identification of customer needs and requirements so as to be able to meet them, make a profit or achieve other key organizational objectives. Huffaz is in the B2B industry so as far as marketing is concerned they dont believe in doing intense marketing campaigns, because they dont have a large target audience. In B2B the customers are few & well known, so according to Huffaz there is no need to do marketing of their products & services. Mostly they participate in different tenders to get projects, other than that their existing clients can also spread a positive word of mouth about them. For understanding the current market they do market search. Good market research and analysis reduces the risk of making the wrong decision. So, whether they wish to launch a new product, extend an established brand, plan market diversification or simply assess a current situation or trend, Business Advantage will provide the solutions.

Technological Knowhow
Huffaz Seamless Pipes - our steel business - is responsible for the manufacture and sale of Huffaz seamless products and for associated prefabrication, logistics and storage services. The main focuses in the steel business are to develop and expand the special steel product business and distribution network, and to strengthen the market position in the Nordic countries and Baltic States. In special steel products, Huffaz Seamless Pipes has both strong technological know-how and modern manufacturing capacity. We aim to grow the share of special steels to account for 60 per cent of the steel business during the next few years. Europe is our core market area, although we are also pursuing growth in the rapidly emerging markets such as China, Brazil, India and Turkey. The growth of, for example, construction and the mining industry in these markets will accelerate the demand for seamless pipes. We are strengthening our position in the Nordic markets by constantly developing our processes, further improving our customer service, delivery accuracy and the quality of our products and services throughout the supply chain. Cost-efficiency and a 13

high capacity utilization rate remain high on the agenda in the steel business. Huffaz Seamless Pipes is a technological leader in its field. We have worked hard to improve energy efficiency and reduce emissions for a number of years. In recognition of our work on this front, for example, the German company Oekom research AG rated Huffaz Seamless Pipes as the best steel company with regard to social and ecological responsibility. During the past ten years, Huffaz Seamless Pipes has developed direct quenching technology, which enables the efficient, quality manufacture of ultra high-strength and wear-resistant steel grades. Today, Huffaz Seamless Pipes is one of the global leaders in the use of direct quenching technology in steel production.

Internal Threats
They are top priority in terms of security concerns. The definition of internal threats is broadening. It is no longer about the disgruntled and dissatisfied employee within the company who misuses confidential information. Its also where users are accessing systems and data. It is fairly easy to create a small piece of software that will attack the internal network once it is planted on any computer system within the corporate network. Distributing the program can be done by anyone without any special computer skills. In most cases, the person who installs the malicious software is not aware of it. Internal controls is defined by the Committee of Sponsoring Organizations of the Tread way Commission, an organization made up of The American Accounting Association, American Institute of Certified Public Accountants, Financial Executives International, Institute of Internal Auditors and the Association for Accountants and Financial Professionals in Business. COSO defines internal control as a process, effected by an entitys board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of the following objectives: effectiveness and efficiency of operations, reliability of financial reporting and compliance with applicable laws and regulations. This is the official definition used by the United States government and is applied broadly to all companies when evaluating business practices. An effective system of internal controls ensures safe and sound operations; the integrity of financial records and managerial reports; the compliance with laws, regulations and supervisory 14

requirements; the decreased risk of unexpected losses and damage to the companys reputation; the adherence to internal policies and procedures; and the efficient operations and long-term profitability goals. Evidence that a companys management organization is lacking in these attributes can be found in various management policies and procedures. A sign that there is a lack of internal control is the absence of specific reporting procedures that track actual performance against budgets, forecasts and prior period performance. These should include independent verification of performance evaluations and reconciliation of balances. Physical control over assets is an important aspect of internal control. A lack of physical control is evidenced by financial and other sensitive records residing in unsecured areas, failing to protect computer applications and databases from unrestricted or unauthorized access, and the failure to secure property in locked facilities. An effective system of internal control must include a separation of duties among employees. An employee who has the responsibility of approving transactions must not be the one responsible to record the transaction and maintain the custody of assets. Also, when employees do not adhere to vacation schedules and periodic rotation of duties, especially employees in sensitive positions, it could be a sign that there is an increased opportunity to perpetuate and conceal errors, irregularities or wrongdoing. Internal control systems must be monitored on an ongoing basis to ensure that the systems are relevant and effective in addressing new risks. When reviews of internal controls are not evaluated periodically through an independent audit or separate risk management group, this is a sign that internal controls are inadequate. Not only must the evaluations be performed independently from the operating groups, but the findings of these periodic evaluations must be reported to the appropriate people with all serious matters brought to the attention of top management. Internal control systems are most effective when they are integrated into the infrastructure of business management procedures. Controls that are implemented as an adjunct process are not sufficient to avoid potential noncompliance of regulations, provide adequate risk protection and ensure the soundness of business practices.

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Outside Threats
External threats are mixed threats that combine multiple characteristics such as worm, virus, spam and denial of service (DoS). Everyday, hundreds of new ways are discovered by intruders and hackers. There are more than 30,000 hacking-oriented Web sites, so it no longer needs a guru to hack a site. Here are some of the common external threats.

DoS: An attacker may try to flood the system with a large number of messages, causing a system overload and possibly leading to a denial of service situation where users are unable to access the service.

Intercept messages: An attacker may intercept and read the content of messages (including the message origin and final destination, arrival and departure order and time) exchanged by users.

Viruses and worms: These originate from outside sources, either targeted at the company or randomly spread on the network through users or the Internet. It leads to situations such as Web site defacement, and nasty viruses and worms that tunnel their way into a network and destroy or alter data and applications, and monopolize system resources by duplicating and spreading themselves.

System disruption: Damage or destruction of physical environment due to fire, political violence and earthquakes.

Huffaz is the pioneers in bringing Seamless pipe to Pakistan in 2008 and they were facing no competition in high pressure fitting till 1999, they were the early entrants, hence relishing the market and high profit margins at that time. Now they had some of direct and indirect competitors which include: Zhongshun Steel Pipe Trade Co., Ltd China.(competitor in Seamless steel pipe) Mughal and Anwar Corporation. (competitors in high pressure fitting)

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Identification of Main Problem

Huffaz is not emphasizing on advertising. But current situation of business is different, in order to capture a market, advertising in very important, as the Indian Company Accenture is doing. Huffaz has a very small setup in Rawalpindi and the work environment is not very good as it should be. Huffaz is focusing on projects; they find different projects of companies and work on them. They are not focusing on developing their own products which they can sell to B2C or B2B, which is a major drawback.

Recommendations
Some of the things that Huffaz should focus on are: They should create a good working environment & make a good setup in Rawalpindi.

Necessary Advertising should be done.

New products should be developed to capture market as competition is increasing in the market. They should develop a dynamic website of their company. Employees should be properly compensated for their work especially during the overtime period and should not be forced but instead should be motivated. Mostly the employees are forced to give over time and are not properly compensated for their, over time work. 17

Easily compile metrics and provide cross-functional insight that considers the entire lifecycle of a transportation order and measures the performance of business partners.

Readily assess how the logistics organization is executing against KPIs Share a real-time snapshot of performance trends with internal and external partners Quickly create new reports and metrics without involving IT resources Proactively uncover opportunities to adjust plans and fix execution problems in real time Leverage all gathered information to implement continuous-improvement programs With a real-time view into critical supply chain information such as carrier performance, freight run rate and shipment status available at the touch of a button, companies can better manage their logistics function and achieve quantifiable results. And, by sharing this information across the logistics network, collaborating internally and externally, as well as effectively communicating with logistics-service providers and suppliers, companies can better manage the entire supply chain to help lower transportation costs, increase customer-service levels and positively impact bottomline results.

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Learning Outcomes
Being an internee at Huffaz was good opportunity for me to learn things that in real world how actually things work and how to deal with the people. More I learnt to demonstrate the ability to communicate effectively and professionally with staff members, clients and peers. From my first meeting, Mr.Saleem Mehmood was very open about wanting to educate me on what I was interested in; what are the ins and outs of Marketing or the vitality of handling the clients. I was also given the opportunity to participate in projects relating to each of Final Pieces diverse and exciting clients which enabled me to understand, not only WHO the target audience was but HOW to reach them. In fact, I now have a wide variety of communication and handling skills to provide to future employers. I have also learnt to establish professionalism in all rotations and assigned responsibilities that might be assigned to me in the near future. My management and leadership skills have also been polished as they also apply to human and other resources. The relationship between work, time and pay is rarely understood by us students. A record of our time helps us in thinking about how long would it take to develop a project as well as the values of your efforts. And this was one very major thing that I learnt. This gave me an opportunity to have a better understanding of the whole purchasing cycle. During the time, I had a chance to visit various factories. They were large in scale and equipped with advanced technology. I could see the flow of production, it really widened my horizon because all the staff members in the marketing were quiet friendly and they taught me lot of knowledge including sourcing goods through the Internet, contacting the suppliers, requesting for quotations as well as filing of documents in a systematic order. I gained a lot like I realized the importance of flexibility while working under the real business environment.

I am now able to predict the outcome of a certain situation and in addition come up with some subjective responses to arising queries and problems. Moreover, I have ascertained to apply critical 19

thinking skills in problem identification and data analysis and also in recognizing the implications of decisions. I have also developed this skill of selecting and integrating from various sources including print resources, community resources, and personally collected data, to answer the questions chosen. My major courses of marketing helped me to quite an extent to understand the real market life. Things I had read in books and which I had applied on projects that used to be assigned to us by our instructors were quite different from that of the real market projects. Those real life projects were pretty much a good exposure and learning process. Over there at internship one is working in an adult environment and one has to strive to achieve work habits that employers seek. I tried my level best to work hard for it and had somewhat achieved it. I have learnt how to work with others and in different scenarios. Through the internship I broadened my views and improved my communication skills. Besides, I found that having flexible mind and attitude were very important in the business world. It was much different from the study. The practical working experience, on-the-job training not only broadens my horizon, but also trains my interpersonal skills and communication skills. I believe that such experiences and skills are valuable to my future career. I have taken full advantage of this internship experience and had learnt as much as possible about how an organization functions and have quite understood the culture in which business meetings take place. Wrapping up, everything I set out to accomplishment with this internship, I did. But it was only through the hands-on experience and guidance provided to me by Mr. Saleem Mehmood my supervisor. To conclude, I would say that it was tiresome job but at the same time a learning and skill enlightening experience too.

Bibliography
www.huffaz.com 20

www.huffaz.com.pk/AnnualReport2010.pdf Huffaz Company Booklet www.google.com www.economic pakistan.wordpress.com

http://www.thetimes100.co.uk/theory/theory--aims-marketing-department-181.php#ixzz1aTJrQYP5

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